Hurricanes. Mandatory Evacuations. Deadly flash flooding.
The insurance industry has seen an uptick in homeowners claims related to floods. What’s worse than a flood destroying parts of your home? Learning your homeowners insurance policy doesn’t cover the damage. The truth is the majority of homeowners believe that their policy includes flood coverage. How do you prepare and protect yourself? What do you need to know?
Home insurance does NOT include flood coverage.
A common misconception about flood coverage in a homeowners policy is that it covers weather-related floods. In reality, the flood insurance that you’ll find in home insurance is intended for sudden water loss such as a water pipe breaking or a leaking toilet. Sometimes, with proper endorsement coverage, homeowners can also be protected from water back up in sewers, drains and sump pumps. Floods from rain water, ground water, swimming pools or bodies of water? Not covered on your homeowners policy.
No matter what, your property is at risk.
There is no such thing as “flood season.” Whether it is from snow and ice thawing in the spring, a hurricane or flash flooding, there is always a chance for flooding. In fact, 100% of properties fall into a flood zone. Roughly a quarter of all National Flood Insurance Program claims come from moderate-to-low-risk areas, so don’t think you’re in the clear based on your location. It only takes a few inches of water to cause tens of thousands of dollars of damage.
Flood insurance is a stand-alone policy.
Issued by the Federal Government (FEMA), flood insurance does cover rain water coming down or ground water coming into a structure. The water can come from storms, swimming pools and bodies of water. The coverage is to protect not only the structure but also its contents.
There is a 30-day waiting period for the insurance to start.
Unless specifically required by your bank, a flood insurance policy takes 30 days to kick in. That means you can’t wait until a couple days before a big storm to add the policy. This is really coverage you should consider investing in as protection for what matters most well in advance of when disaster strikes.
McConkey can help you get started by quoting a flood policy for you to prepare for unexpected situations. Get in touch with our Personal Lines Department today!
Jody Czap, CISR
Personal Lines Supervisor